Study the graph below and answer the following questions. 
(a) Is this firm making profit by producing 500 units in the short run? Why or why not?
(b) What will happen in the long run in this industry?
(c) Will the firm survive in this industry?
Definitions:
Population Variance
The average of the squared differences from the Mean, for the entire population.
Zα/2
The z-score that corresponds to the critical value for a two-tailed hypothesis test at a given significance level α.
Maximum Allowable Error
The largest error or deviation from a standard or expected value that is considered acceptable.
Conference Rooms
Designated spaces in an office or facility set aside for meetings, seminars, or discussions.
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